Rupee to stabilise very soon: Official
Kolkata, Aug 18 : The Indian rupee, which has been depreciating against the dollar on account of external factors, will "stabilise" soon with the fundamental equation for trade unchanged, an official said here on Saturday.
"This breaching of 70 (mark) was on account of external factors largely on what happened in Turkey. Our fundamental equation for the trade has not been changed. Oil prices have not gone up.
"The demand-supply situation for dollars in the Indian economy has not got altered... our perception is that very soon it (rupee) will stabilise and it might go back to Rs 68-69," Union Finance Ministry's Department of Economic Affairs Secretary Subhas Chandra Garg said here.
On Thursday, the rupee had touched an all time low of 70.39-40 in the spot market and settled at a record closing low of 70.16 against the greenback.
Speaking on capital outflow, Garg said: "There was an outflow of $9 billion in terms of portfolio investments in the first three months of the current fiscal and last year, we had a inflow of $20 billion. But in July, there was no outflow. In August, there is positive inflow of about $1.5 billion."
"It makes it clear that the episode arising out of Turkey essentially does not alter FPIs' (Foreign Portfolio Investors) perception about the investability of India. I do not think that will change," he said on the sidelines of a Merchants' Chamber of Commerce and Industry's event.
Garg also said that public sector banks, which are under Prompt Corrective Actions (PCA) imposed by the Reserve Bank of India, would do better going forward and there would be lesser requirement for provisioning of bad loans.
"Profitability of these banks will be coming back. They are expected to come out of PCA in the next 1-2 years," he added.
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Siddaramaiah holds emergency meeting with top cops over Kotekar Cooperative Society robbery
Mangaluru: Chief Minister Siddaramaiah convened an emergency meeting with senior police officials in Mangaluru following the robbery at the Kotekar Cooperative Society on K.C. Road, Talapady. He directed authorities to expedite the investigation and apprehend the culprits at the earliest.
The meeting took place after a Medical Education Department program and was attended by Western Zone IG Amit, Mangaluru City Police Commissioner Anupam Agrawal, SP Yatish, and DySP.
Seeking a detailed briefing on the incident, Siddaramaiah questioned the officials about how the robbers managed to escape so easily, how many toll gates they crossed, and the lack of security at these checkpoints.
The officials however, conveyed that there was no security officer at the Society’s office at the time of the robbery and only five or six staff members were present at the time of the heist.
Police officials informed the Chief Minister that the suspects were recorded speaking in Kannada and Hindi. Siddaramaiah instructed the authorities to enforce strict checks at all toll gates, impose blockades across four districts borders, and ensure the arrest of the accused for strict legal action.
